Abstract

The global food and beverage (F&B) industry is undergoing a profound structural transformation driven by climate urgency, shifting consumer ethics, rapid digitalization, and evolving expectations for experiential experiences. With a market value projected to exceed $12.5 trillion by 2027, this research examines how innovation in sustainability, personalization, technology, and experience is transforming value creation and operational paradigms in the sector. This paper aims to identify the key innovation drivers reshaping the F&B landscape, examine their impact on operational models, consumer engagement, and sustainability outcomes, and provide strategic recommendations for industry stakeholders to adapt and thrive amid accelerating change. The research adopts a qualitative approach, utilizing a comparative literature-based method. The study synthesizes recent academic research, industry reports, and real-world case studies published between 2020 and 2025. The research reveals a paradigm shift from transactional efficiency to purpose driven, data-enabled, and emotionally engaging food systems. Sustainability has evolved into a strategic imperative, evidenced by precision fermentation, regenerative sourcing, and zero-waste innovations. Technology integration through AI, blockchain, and IoT is optimizing transparency, traceability, and predictive logistics. It was recommended that embedding circular economy practices and carbon transparency into core operations, leveraging AI, IoT, and blockchain to enhance supply chain traceability, reduce waste, personalize offerings, and foster agile, cross-disciplinary innovation ecosystems to deliver emotionally engaging, future-ready dining experiences.